Oracle third-quarter profits beat estimates
21 Mar 2012
Enterprise software giant, Oracle, reported fiscal third-quarter profit and new license sales that beat analysts' projections as the company sold more databases and business applications.
New software-license sales, a predictor of revenue growth, were up 7 per cent to $2.37 billion, according to the Redwood Shores company. Analysts had projected 3 per cent growth, Raimo Lenschow, an analyst at Barclays Capital, wrote in a Friday research note. Profit excluding certain costs were up at 62 cents per share, as against 56 cents, the average estimate of analysts, data compiled by Bloomberg showed.
The company earned $2.5 billion, or 49 cents per share, during the most recent quarter, an 18 per cent increase as against the net income of $2.1 billion, or 41 cents per share, at the same time last year.
According to Lenschow, the database software maker followed last quarter by a rejig of its sales force, concluding delayed deals and leveraging the improving economy; Lenschow, rates Oracle "overweight."
In the note he said strong management rhetoric on execution, the completion of a sales force re-organisation and a better economic environment, pointed to positive results.
The company's hardware arm is under pressure as sales have declined 16 per cent to $869 million.
